Companies like MasterCard, Visa and American Express are expected to prevent EBay-owned PayPal from moving further into retail payments, by applying fees to digital wallet operators, Nomura Equity Research said.
EBay’s shares plunged to a 2013 low on Monday and Nomura analysts Bill Carcache and Brian Nowak said: "Payment networks are taking the gloves off."
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"The incumbents will do everything in their power to prevent PayPal from riding on their rails without extracting a toll."
MasterCard plans to implement the new fee for digital wallet operators that use the MasterCard network, in June.
MasterCard hasn’t specified how big the new fees will be, except to say that they’ll be tiered and based on prior-year volumes.
Carcache and Nowak called the new fees, an "effectice vehicle" for diffusing the frustration amongst payment networks, suggesting that others might follow MasterCard’s lead.
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By GlobalDataEffective of MasterCard’s announcement, EBay shares slid to a 2013 low, to $50.18, on Monday afternoon, leaving them down about 4% so far this year.
Analysts put that under-performance down to the new fee and concern about rising tension between PayPal and the payment networks.
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